bZx : Decentralized, peer-to-peer margin funding and trading protocol


What is bZx ?

First of all let me clear it that this is not an Exchange but this is an protocol that can be integrated into the current infrastructure. this is build on ethereum platform and integrated with 0X protocol. bZx protocol can be integrated into any current exchange infrastructure . Exchanges and relays are incentivized by fees denominated in the bZx protocol tokens (BZX) to offer decentralized margin lending and margin trading services. 

 

Why we need bZx Protocol :

what motivates bZx protocol is "Persistent contradictions of cryptocurrency space has been the theme of Decentralized assets traded on centralized exchanges".
if we see the current state of decentralized exchanges then we can easily see that these exchanges are still lacking the capabilities of the leading centralized exchanges.
Here we have the two main causes of this :-* Low liquidity : Low liquidity means that there is a low volume of buyers and sellers. This can result in worse prices or difficulties filling large orders.
* large Spreads : Large spreads are caused by large gaps between bids and asks. This imposes large costs for entering and exiting positions.these are the some issue which need to be solved to have a better Decentralized Exchange trading experience, and so we need bZx Protocol

 

How bZx Solves Decentralized Exchange Liquidity :

bZx Protocol bridges centralized and decentralized liquidity pools using tokenized margin loans. With bZx’s Universal Liquidity, you get access to the entire margin lending market. This means less slippage and tighter spreads. This means less slippage and tighter spreads.

Component of bZx Protocol :

bZx Protocol is having three main components which i have explained briefly below.

  • bZx.Js Library :
    This is an asynchronous java script library that contains all the function needed to interact with bZx smart contract on-chain.software developers can use this library easily to integrate with and develop for the bZx protocol. this will give decentralized exchanges features similar to many centralized exchanges.
  • bZx Portal :
    This will be an web based decentralized application which will serve as a frontend to the bZx Protocol and for doing so it will utilize bZx.js library, and provide any individual a platform to interact with the protocol for margin lending and trading.
    Portal will have four section :-
  • A section for lender and trader to make or take bZx loan orders.
  • A section for the trader to manage the loan once the funds are lent,including the opening of trades ,closing of trades and ending a loan early.
  • A section for the trader to manage the loan once the funds are lent, including reviewing how their funds are being used and requesting an interest payout.
  • A section for bounty hunters to manage open trades for margin liquidation and to liquidate if needed.
  • bZx smart contracts :
    bZx protocol is series of smart contracts that will facilitate on-chain margin lending ,and opening , monitoring and liquidation of ERC20 tokens trades and these all state changing transaction will happen inside bZx.sol smart contract.
    further this bZx.sol will have three sub-contracts :-
    1) bZxVault.sol
    2) bzxTo0X.sol
    3) Oracle_interface.sol

How it will work :

bZx will create an oracle marketplace where oracle providers complete,allowing providers and users to select the trade-offs tailored to the individuals. This system will allow oracle services to be provided at the lowest possible fees with highest reliability. any one can create their own oracle and can configure it accordingly. An oracle provider can charge any fees they want, but individuals may choose not to use them if fees is too high. 

 bZx protocol tries to make the contract as economical as possible with regards to gas uses. A ten percent fees will be collected from the interest earned by lenders and will be used for functions like :

  • decentralized governance.
  • Bounty hunter incentivization.
  • gas fees refunds.
  •  systemic risk insurance. 


The BZX token is a utility token with two main functions:

1) The incentivization of order book aggregation by relays.
2) Governance of the bZx protocol. 

Token Distribution :
 

Allocation of Funds :

Roadmap :

Team :

For more information :

Author: Raghav


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